Photo: Portland Appraisal Blog
Barbur Apartments Groundbreaking
Groundbreaking began in mid-December 2025 on the Barbur Apartments, a 150-unit affordable family housing project at the corner of SW Barbur Blvd and SW Capitol Hill Rd in Portland’s Hillsdale/Multnomah Village area.
Developed by Innovative Housing, Inc., the complex will have one three-story building and two four-story buildings, bringing the total unit count to 150. With one unit reserved for an onsite manager, 149 units will be income-restricted, with many configured as larger two- to four-bedroom layouts for immigrant and refugee families—alongside amenities such as a courtyard and community spaces. Completion is anticipated in Fall 2027.
The project has an estimated total development cost of approximately $79.4 million, with the Portland Housing Bureau contributing about $27.3 million alongside regional Metro Housing Bond funds, federal sources, and Portland Clean Energy Community Benefits Fund dollars for energy efficiency.
The project emphasizes transit access along the Barbur corridor. Approved plans include approximately 45 on-site parking spaces—a low ratio of roughly 0.3 spaces per unit that reflects the transit-oriented design.
Appraisal Implications: Plottage and Highest-and-Best-Use Shift
The site’s redevelopment offers a clear illustration of plottage—the added value created when contiguous parcels are assembled into a larger, more viable development parcel.
Four separate tax lots totaling approximately 2.19 acres were acquired together in February 2025 for just under $6 million. Individually, the parcels supported lower-intensity uses limited by size, zoning, and existing improvements.
Image: Portland Maps
One parcel previously contained a 1927-built single-family home of approximately 2,336 square feet. Never listed on the open market, the house exhibited functional obsolescence relative to the corridor’s evolving highest and best use and was rapidly demolished.
Photo: Portland Appraisal Blog
An adjacent commercial strip—formerly Barbur Blvd Rentals—remains standing but is now fenced within the secured construction zone.
Photo: Portland Appraisal Blog
Combined, these parcels unlock a scale and density that individual lots could not support, demonstrating classic plottage principles in a transit-oriented location.
Directly across Barbur Blvd, there is a large Safeway complex.
Photo: Portland Appraisal Blog
This Safeway has an impressive open-access parking garage underneath the store. The center’s covered and surface parking serves as a major existing amenity. Given the Barbur Apartments’ family-oriented unit mix and limited on-site stalls, residents and guests may increasingly rely on this convenient private lot for overflow. A recent visit to the garage mid-morning showed a nearly full garage. It’s possible daytime use of the garage may skyrocket once the apartment complex is built—a dynamic worth monitoring as occupancy begins in 2027.
Photo: Portland Appraisal Blog
Market Context
In the immediate Hillsdale and Multnomah Village neighborhoods, closed sales from 2024–2025 reflect sustained demand amid limited affordability.
| Type | # of Sales | Avg Close Price | Avg PPSF | Avg Total SF | Avg CDOM |
|---|---|---|---|---|---|
| Detached | 351 | $750k | $342 | 2,313 | 50 days |
| Condo | 78 | $445k | $321 | 1,382 | 68 days |
| Attached | 13 | $581k | $328 | 1,846 | 49 days |
| Total | 442 | $691k | $338 | 2,135 | 53 days |
Detached homes dominated activity with 351 sales at an average of $750,000 and brisk 50-day market times. Condominiums—the most accessible ownership segment by volume—averaged $445,000 across 78 sales, though with noticeably longer absorption (68 days CDOM). While attached homes (such as townhomes) represent a small segment of the market with only 13 transactions, they averaged $581,000—likely reflecting more recent construction (average year built 2010) and associated premiums.
These figures across all segments highlight significant ownership barriers in the submarket, reinforcing the role of regulated rental projects like Barbur Apartments for lower-income and larger families.
This assemblage aligns with broader efforts to expand housing supply through density and public investment, including recent regulatory reforms aimed at reviving Portland development.
Sources & Further Reading
- Barbur Apartments groundbreaking announcement: Portland Housing Bureau
- Barbur Apartments Project details: Portland Housing Bureau
- Barbur Apartments parking and design details: Hillsdale Neighborhood News (February 2025)
- Recent Portland development reforms and housing push: PortlandAppraisalBlog
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland Appraisal Blog 